Lessons from ABC's the Shark Tank

ABC's The Shark Tank (see my earlier review here) is quickly becoming a powerful force in its timeslot on Sundays at 9/8c. The show's rating sky rocketed by as much as 30% during its second week and the newly remodeled shark tank where the Sharks sit helps make it more personal and, thus, more inviting. But these changes are only because of one thing: The show teaches the audience about cut-throat business in a way no other shows in this genre (for example American Inventor) has ever done, by immersing the audience and the contestants in often hard-nosed deals.

The show is a must for anyone who thinks they have the next great business, business idea or invention. Here's a sampling of what viewers in just the first three weeks of the show now know about business:

1) Get sales before approaching an investor, especially The Sharks. As it turns out, investors want to make money. The only way they can know if they stand a chance at making money on a new product is if you can present them with guaranteed sales from retailers, consumers or whomever. If they see that they can make a profit, then your odds of getting the backing increase substantially.

2) Be realistic about value of and marketability of your product or business. Many of the contests on The Shark Tank have been laughed right off the set for this reason. Do your math and be realistic. Don't be like the guys who thought their "Foxes with Boxes" company was worth a million dollars or the guy who was asking for financing for Bluetooth devices implanted in your skin near you ear.

3) Go to trade shows. The best way to get the connections in the area of your product or idea is to go to trade shows where like-minded people will also be. It just makes sense. But many people I know, me included, had heard of these, but never knew we could go to them ourselves. We always assumed it was for the "big boys" to meet the other "big boys." Not so. Dive into that feed frenzy. You might make the contacts you need to push out your product and make your dreams come true.

4) Realize that if you own a patent, nearly every deal offered will include turning over the rights on the patent, in whole or in part. As difficult as it is to let go of your baby, if you want the money, the financing for your product, you need to let go of the reigns and let someone with knowledge in that area take over. It hurts. You created it and now you're being asked to give it up, but that's business. You still have the knowledge and proof that that incredible invention was your idea. And isn't that rally why you invented it? To get it out there to help the world?

5) Don't be prideful; it kills deals faster than being greedy. Deals on incredible inventions like the hinged guitar have gone sour because the inventor first refuse to do #4 and two, was too prideful to let go of his pride. As Kevin O'Leary is so fond of pointing out: "Money has no feelings. It doesn't care." And with that, neither should you...much.

Okay. There is a bit of irony in all this. If you do all this work, you should have no need for the Sharks in the first place. So the Sharks are doing potential business people and inventors looking for investors an unprecedented chance (in American reality shows that it) to glean hints of information from their years of experience in different fields like real estate, finances, fashion, and television marketing. And all that advice is free and entertaining. Not a bad combination of advice when you're trying to get your idea out there.